Viscofan cuts its dividend by 6.1% due to the impact of exchange rates

Viscovan It closes out a good quarter on a business level, despite the headwinds cutting into its margins and bottom line. The world leader in the casings sector for the meat industry is registered Sales reached 308 million between January and March, up 17.3%Thanks to the recorded improvement in price mix and volume sales growth in its traditional business, as well as the contribution of its new business which contributed $40.5 million to its turnover.

The company recorded its best development in latin americaIt grew by 40.6%, especially in the region Europe, Middle East and Africawhich advanced 24.7%, but represents roughly 43% of the company’s business. north americaits other major market, up 10.5%.

Viscofan explains that the growth in his sales was accompanied by a parallel with a Increase pressure on your raw material costs (especially collagen) f energy (Upon completion of the negotiated supply contracts for 2022 and new contracts effective February 2023.

This circumstance caused The company grew by 6.9% during the quarter, Less than half of sales to 61.7 million. Its EBITDA margin was 20%, two points lower than a year earlier. Operating result grew less, 5.8%, to 41.1 million due to amortizations made for a total of 20.6 million.

If exchange rates raise a company’s growth by nearly 2 points, it has had a negative effect on profit causing it The company’s net result fell 6.1% in the first quarter, up to 25.8 million.

Viscofan expects to reduce its investment this year to 75 million euros, 50.6 million less than in the previous year. Its bank debts rose in one year from 101 to 133 million “Because of the increase in working capital as a result of the increase in inventory.”

“The strength of our business model and improvements in price mix and cost control, It made it possible to offset the effect of a sharp increase in costs, resulting in quarterly results in line with expectations for the year 2023 as a whole,” noted José Domingo de Ampuero y Osma, President of the Viscofan Group.